Can a cheque bounce case be filed for a gift cheque?

Law4u App Download
Answer By law4u team

No, a cheque bounce case cannot typically be filed for a gift cheque under Section 138 of the Negotiable Instruments Act, 1881. This is because the legal framework under Section 138 requires that the cheque must have been issued for the discharge of a legally enforceable debt or liability. A gift cheque does not fulfill this criterion, as it is not issued to settle a debt or obligation but is given voluntarily as a gift. Key Points: Purpose of Section 138: The cheque must be issued to satisfy an existing legal liability or debt. A gift cheque, by its nature, is not associated with any financial obligation or liability. Essential Conditions for Section 138 to Apply: There must be a legally enforceable debt or liability. The cheque must be presented within its validity period. The payee must serve a notice to the drawer within 30 days of receiving information about the dishonor. The drawer must fail to pay the cheque amount within 15 days of receiving the notice. Gift Cheques: Since a gift cheque is not issued for repayment of a debt, it does not fulfill the conditions necessary to constitute an offense under Section 138. Alternative Remedies: If a gift cheque bounces, the recipient may consider filing a civil suit for damages, but they would need to establish that the drawer had promised to honor the cheque, leading to reliance or loss. Conclusion: A cheque bounce case under Section 138 cannot be filed for a gift cheque, as it does not represent a legally enforceable debt or liability. However, alternative legal remedies may be explored, depending on the specific circumstances.

Cheque Bounce Related Questions

Discover clear and detailed answers to common questions about Cheque Bounce. Learn about procedures and more in straightforward language.